SUNNYVALE, Calif.—Proxim Inc. and Western Multiplex Corp. agreed to merge and will operate going forward under the Proxim name.
Under terms of the agreement, each outstanding share of Proxim common stock will be converted into 1.889 shares of Western Multiplex common stock, the companies said. Upon completion of the merger, Proxim and Western Multiplex shareholders will each own approximately 50 percent of the combined company.
“The merger with Western Multiplex will expand the breadth of our wireless expertise and increase our economies of scale. Our goal is to utilize our development assets to provide integrated last-mile access and in-building distribution for the enterprise and residential markets,” said David King, chairman and chief executive officer of Proxim.
Jonathan Zakin, chairman and CEO of Western Multiplex, will retain his position with the new company. King will become president and chief operating officer.
The combined company will be headquartered in Sunnyvale, Calif., and have about 485 employees, including 174 research and development staff.
The merger is subject to customary closing conditions, but is expected to close during the second quarter.
